When do OEMs use special logistics and rigging companies, and when should you?

December 30, 2015
by Cristoph Sitzer, CEO, Hegele Logistic LLC
The original equipment manufacturers (OEMs) of imaging equipment have long recognized that rigging and installation are not part of their core business. In the past, OEMs’ service departments were in charge of delivering and installing new medical equipment, as well as handling emergency service calls and troubleshooting equipment problems. Because service calls take priority over routine installations, completion delays caused by service call interruptions often upset the routine of performing rigging and mechanical installations.

As the pressure to reduce installation delays increased, while at the same time the demands on skilled OEM technicians to spend more time servicing equipment also increased, the OEMs started to look for outsourced solutions for their installation projects. They reached out to technical and logistics service providers. Those specialized service providers have trained technicians on staff and are experienced in handling and shipping highly sensitive and valuable medical equipment via truck, air or sea. Additionally, these logistics companies could be seamlessly integrated into the overall project management with hospitals, general contractors and the OEMs of the medical equipment.

The technicians of service and logistics companies are specialized in certain systems (CT, MR, general X-ray, cardiography, PET, SPECT) and complete installations every week. Given the high frequency of installation projects, these technicians have acquired a higher level of expertise and perform more efficiently than those who complete installations at a much lower rate. Most often, the technicians are either factory trained or have passed an OEM-audited internal training program. They are also more likely to have the correct tools available and the unique knowledge base to utilize the tools.

Since the installation is part of a highly complex supply chain of medical equipment from the factory to the hospital, these service and logistics companies have skilled professionals onboard. They have the experience to effortlessly navigate both domestic and international logistics, including customs clearance and DOT regulations. The overall project management/coordination of an installation is often undervalued, but it is critical for the success of the project. This is another area where the service and logistics company experts improve the process and outcome of any installation.

In cooperation with the hospital, general contractor and project managers of the OEM, they define rigging paths for MRs, CTs and other heavy equipment. These logistics experts have access to industry networks and can obtain the right crane equipment and experienced rigging crews, proper forklifts and even obtain the required city permits, all while maintaining a focus on the project schedule. During the installation process, they provide constant project updates to the appropriate parties and swiftly intervene if delays occur.
Outsourcing installation to a service and logistics company is not always the least expensive solution. However, the end result is almost always a safe and efficient installation with minimal interruption to a hospital’s normal operations — a key element in today’s “patient-focused” environment.

For a moment let’s also discuss how important the customer satisfaction or the customer’s experience is in the overall project. There is no magic formula for this, however, in a very competitive marketplace, the slightest differences between imaging vendors are highlighted by the customer, based on their positive or negative experiences. If it is an efficient and professionally-handled project, the stakeholders have less to worry about, and confirm that they have made the right equipment purchase decision. So what value do you put on excellent customer satisfaction? If the business goal is to secure repeat business or enhance the customer’s experience, then one has to make sure the very best logistics vendors are contracted to handle the job.

When it comes to de-installation and relocation of used medical equipment, including de-installation for resale, the experience gained by logistics companies that work with OEMs provides expertise that can help make even the most difficult de-installs go smoothly. In addition, they carry extensive insurance coverage that is compliant with market standards.

In many cases, the particular system and its components require special transportation devices and frames for de-installation, and specialized logistics companies will have these items. Far too often, extensive and costly damage occurs due to negligence and lack of experience with various systems, especially Biplane, CT or MR systems. One thing to remember when you are arranging to hire a deinstallation logistics company is ask your colleagues in your region for referrals. And start early. You don’t want to begin looking for a de-installer the same week you want the job done. Send plenty of photographs of the equipment and its location to prospective deinstallers so they can see what the job might entail. Get quotes from several companies, but don’t go by price alone — a lowball offer might be attractive but could cost you dearly in the end.

Here are questions about your special logistics provider you want answered:
• Do they have experience working in the health care environment?
• Do they have dedicated cross functional teams? (multi-modalities)
• Do they have dedicated rigging/mechanical teams?
• Do they use qualified professional third-party riggers, when needed?
• Do they offer site visits prior to project start?
• Do they have a quality management system in place? (“ISO Certification”)
• Do they have their own tool management system?
• Do they have proper property and casualty insurance?
• Have you visited their facility? Is it clean and organized?
• And always ask for references.

Once you choose your de-installer, set a firm date to have the job done. Be aware that for equipment like CTs and MRs, it may take more than one day to remove the machine. Also make sure everyone at your facility who should know, does know about the de-install. The facility manager needs to communicate with the imaging department, security, the maintenance staff, etc., so no one is surprised when the job starts. The machine should be decommissioned and ready to be removed before the logistics company arrives.

The above overview of service and logistics companies should provide food for thought when deciding on service providers for installation and de-installation projects in your hospital system.

Christoph Sitzer

Christoph Sitzer is the CEO of Hegele Logistic, in Wood Dale, Illinois